DBS to stop funding ‘dirty-coal’ projects by year end

The DBS bank will stop financing 'dirty-coal' or low-grade coal projects by the end of this year, but continue to support ventures in emerging markets that uses higher-quality coal, a top bank official has said.

The Singapore-headquartered bank, which is rated among the largest in Asia, will also focus on funding renewable energy projects, Chief Executive Piyush Gupta said.

At a DBS financial results briefing yesterday, bank’s he said that the bank will stop financing projects that burn low-grade coal, also known as “dirty coal“, by the end of the year.

But, he was quick to assure that the DBS will continue to lend to projects in emerging markets that burn “higher quality” coal, at the same time start developing a portfolio of renewable energy projects to shift the mix of its loans.

“In respect of coal, we start with one caveat: We have got to remember that the bulk of energy needs in our part of the world are from coal,” he said.

Citing global energy reports on coal, according to which by 2040 it would still account for about 40 per cent of the power generation mix, he said, “It is important to understand that you can’t turn this off.”